new York
CNN Business
—
Toys “R” Us may be back.
The company closed all of its U.S. stores in June as part of a receivership. But the owners of the company’s remaining assets are looking to revive the business, as well as the related Babies “R” Us brand, the company disclosed in a court filing this week.
Toys “R” Us had planned to auction off the rights to its Babies “R” Us name and brand. Bidders had already made offers to acquire them, according to the filing. But the company’s owners decided to cancel the sale.
The company said it plans to create a new retail company under the Toys “R” Us and Babies “R” Us names, according to the filing. The plan would “create new domestic retail businesses under the Toys “R” Us and Babies “R” Us names, as well as expand its international presence and further develop its private label business.”
Details regarding when and how the brand would be brought back to life have not been released.
The fact that other buyers were interested in buying the name doesn’t necessarily mean that others were looking to revive it. Companies often buy the brands of bankrupt competitors in bankruptcy court to ensure that the brand can’t be reused by a new rival. Details about who was looking to buy the Toys “R” Us brand were also not disclosed in the bankruptcy filing.
Toys “R” Us filed for bankruptcy a year ago, intending to use the restructuring process to shed its debt and continue operating. But after a disastrous holiday shopping season, the company announced in March that it would close its remaining 800 U.S. stores and cease operations.
It cost about 31,000 workers their jobs. The 70-year-old company closed in June.
Cnn
